Debt Distortion: Why Dave Ramsey and Robert Kiyosaki are BOTH Right

Imagine a world where everything you perceive to be true about finance, family, fitness, food, etc… is not what millions of other humans perceive to be true. Not only that – people attempt to bring you down for your beliefs, or talk quietly amongst themselves about how stupid you are for doing the things you do. To be fair, you don’t think that highly of them either. You’re experiencing selective distortion – welcome to planet Earth. A Tale of Two Titans Let’s take a look at two highly successful, well-respected financial gurus and their respective stances on debt: Robert Kiyosaki, author of Rich Dad, Poor Dad, says that there is such a thing as good debt – or debt used to buy money-generating assets like rental properties and business equipment.   Dave Ramsey, radio personality and author of The Total Money Makeover, teaches followers to avoid debt altogether, often quoting Proverbs 22:7 – “The rich rule over the poor, and the borrower is slave to the lender.” Both agree that  debt carried on credit cards and cars is to be avoided, because these things only make us poorer. Kiyosaki is not against using credit cards persay, but teaches that balances should be paid in full every month. While some see Ramsey’s stance on not using credit at all as extreme, the fact that the Federal Reserve estimates that almost half of U.S. households are unable to pay their credit card bills in full each month, and that these households owe more than $800 billion in card debt …